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RFE/RL Newsline, Vol. 1, No. 134, 97-10-08Radio Free Europe/Radio Liberty: Newsline Directory - Previous Article - Next ArticleFrom: Radio Free Europe/Radio Liberty <http://www.rferl.org>RFE/RL NEWSLINEVol. 1, No. 134, 8 October 1997CONTENTS[A] TRANSCAUCASUS AND CENTRAL ASIA
[B] SOUTHEASTERN EUROPE
[C] END NOTE
[A] TRANSCAUCASUS AND CENTRAL ASIA[01] KARABAKH PRESIDENT REJECTS MINSK GROUP PEACE PLANArkadii Ghukasyan told journalists on 7 October that Karabakh cannot accept any proposed peace plan based on the region's subordination to Baku, RFE/RL's correspondent in Stepanakert reported. Ghukasyan said Nagorno- Karabakh is ready to discuss a "confederative relationship" with Azerbaijan and to cede part of its de facto independence to establish such a relationship. Ghukasyan also rejected a "phased" resolution of the conflict whereby a decision on Karabakh's status will be postponed until the final stage of the peace process. He admitted that a "package" solution resolving all contentious issues within one framework document would be more difficult to achieve, according to Noyan Tapan. Ghukasyan also admitted that he recently discussed with Armenian President Levon Ter-Petrossyan unspecified differences in their approaches to resolving the conflict. Also on 7 October, the Karabakh Foreign Ministry released a statement protesting violations of the confidentiality of the peace process by Azerbaijani leaders, including President Heidar Aliev.[02] "NO DIFFERENCES" OVER KARABAKH BETWEEN ARMENIAN PRESIDENT, FOREIGN MINISTRYSpeaking at a news conference in Yerevan on 6 October, Foreign Ministry spokesman Arsen Gasparyan denied Turkish press speculation about differences of opinion over Karabakh between Levon Ter-Petrossyan and the Foreign Ministry. Gasparyan said that such differences "do not and cannot exist." Gasparyan differentiated between applying the "phased" approach to the negotiating process and to a settlement document. At the same time, he declined to elaborate on the provisions of the "phased" plan proposed by the Minsk Group co-chairmen before the three conflict sides have submitted their written responses to that plan. They are scheduled to do so within the next few days. Gasparyan also expressed the hope that Baku will at last consent to direct talks with the Karabakh Armenian leadership. He said that only such talks could "yield a breakthrough and give new impetus to the peace process."[03] RUSSIAN FOREIGN MINISTER IN BAKUFollowing his meeting with President Aliev in Baku on 7 October, Yevgenii Primakov told journalists that the two-hour talks were "useful and interesting," Russian agencies reported. Primakov again stressed that the Russian-Armenian treaty on friendship, cooperation and mutual assistance, signed in late August, is not directed against Azerbaijan and will not be used to support forces that oppose Azerbaijan's territorial integrity. Primakov welcomed Baku's positive assessment of the most recent Karabakh peace proposals by the co-chairmen of the Organization for Security and Cooperation in Europe's Minsk Group. Aliev said those proposals entail the withdrawal of Armenian forces first from six districts adjacent to Karabakh and then from the Karabakh town of Shusha and the district of Lachin, which lies between Karabakh and the Azerbaijani-Armenian frontier.[04] GEORGIA WON'T OPEN AIR SPACE TO CHECHNYAZurab Chankotadze, the head of the Georgian Air Transport department, told Interfax on 7 October that Chechnya has not officially asked Georgia to open an air corridor across its territory. Chankotadze commented that if the Chechen leadership were to make such a request, it would be "impossible" for Georgia to comply without Russia's consent. Also on 7 October, Chechen parliamentary speaker Ruslan Alikhadzhiev told ITAR-TASS that Chechnya is preparing to issue its own domestic and international passports.[05] CHEVRON ON PIPELINE ROUTES FOR KAZAKH OILChevron President Richard Matzke has held separate talks in Almaty and Baku with Presidents Nursultan Nazarbaev and Heidar Aliev on the optimal route for exporting oil from Kazakhstan's Tengiz field. That field will yield some 7.5 million metric tons by the end of 1997, but only 3 million can be exported via the existing pipeline across Russia. Matzke told journalists in Almaty on 3 October that he would prefer to export larger quantities via Russia but that if this proves impossible Chevron will consider the Baku- Batumi pipeline. Meanwhile, Vladimir Stanev, director-general of the Russian affiliate of the Caspian Pipeline Consortium, which is to build a pipeline from Tengiz to the Russian Black Sea port of Novorossiisk, said on 7 October that a feasibility study for that pipeline will be completed by April 1998. Construction will begin in September 1998 and will be completed by August 2000.[06] TENSIONS RISE BETWEEN KAZAKH MARCHERS, POLICEPolice continue to prevent workers from the Achisay Polimetal plant in Kentau from crossing a bridge over the Arys irrigation canal near Turkestan, ITAR-TASS reported. The workers are planning to march on Almaty to protest non-payment of wages. They have rejected an offer by regional officials to pay half the accumulated wage arrears and are demanding payment in full. Representatives of the local trade union branch in Kentau have met with Turkestan's mayor and agreed to send five delegates to the capital to meet with President Nazarbaev, RFE/RL's Almaty bureau reported. Workers' representatives from the cities of Tekeli, Pavlodar, and Oskemen have traveled to Turkestan to demonstrate solidarity with the marchers, whose numbers have grown to some 2,000, including 300 women and 100 children.[07] UZBEKISTAN PROPOSES AFGHAN PEACE PLANAddressing the UN General Assembly on 7 October, Uzbek Foreign Minister Abdulaziz Kamilov proposed creating a "Contact Group" for Afghanistan composed of Russia, the U.S., China, Iran, and countries bordering on Afghanistan, AFP reported. The group would hold talks with the various warring Afghan factions in a bid to mediate an end to the war. Kamilov also called for an arms embargo against Afghanistan. "The New York Times" on 5 October quoted Kamilov as saying that Uzbekistan advocates creating a coalition government in Kabul that would include the Taliban and other political groups. He said that no single faction is strong enough to build a stable government.[B] SOUTHEASTERN EUROPE[08] WESTENDORP, KRAJISNIK DISCUSS RESTRUCTURING TVCarlos Westendorp, the international community's High Representative, met in Sarajevo on 7 October with Momcilo Krajisnik, the Bosnian Serb member of the Bosnian tripartite presidency and the chairman of the board of Bosnian Serb Radio and Television (SRT). Westendorp set out the criteria for restructuring SRT to enable the Pale studio to resume broadcasting, which was halted on Westendorp's orders on 1 October. A spokesman for Westendorp said one of the main conditions is that politicians withdraw from the SRT's board of directors and give up their right to control the station. He added that SRT's board is primarily made up of politicians loyal to the hard-line Serbian Democratic Party. The spokesman also said that Westendorp's goal is to reform all SRT programming, meaning in Banja Luka as well as in Pale.[09] PALE INTERIOR MINISTER DISCUSSES POLICE REORGANIZATION WITH UNBosnian Serb Interior Minister Slavko Poleksic, who is loyal to the Pale leadership, held talks in Pale on 7 October with the UN International Police Task Force (IPTF). Poleksic said the Republika Srpska is interested in reorganizing the police in line with the requirements of the IPTF and other international organizations. But he told IPTF deputy commissioner Werner Schumm that such a reorganization will require much time and money.[10] EASTERN SLAVONIA NOT READY FOR RETURN TO CROATIAUN Secretary-General Kofi Annan said in New York on 7 October that conditions are not yet in place for Croatia to take over eastern Slavonia. Annan said Croatia has failed in confidence-building and reconciliation efforts in the region but still has time "to comply fully with its obligations before 15 January 1998," when the UN must decide whether to renew the mandate of its mission in eastern Slavonia. Meanwhile in Zagreb, Croatian Foreign Minister, Mate Granic, told ambassadors of the Contact Group that Croatia wants to do everything necessary to ensure the successful conclusion of the UN's mission in eastern Slavonia.[11] DRASKOVIC TO RUN IN NEW SERBIAN POLLThe opposition Serbian Renewal Movement (SPO) has said party leader Vuk Draskovic, who came third in the first round of the 21 September presidential elections, will run again in the new vote expected to be held later this year, "Nasa Borba" reported on 8 October. SPO spokesman Andeljko Trpkovic said the failure of the 5 October second round shows that an opposition candidate could win the elections in the first round, provided he had backing from all three parties united in the Zajedno movement. The other two Zajedno parties boycotted the poll, but their leaders, Zoran Djindjic and Vesna Pesic, have already declared their readiness to run in new elections (see "RFE/RL Newsline," 7 October 1997).[12] OSCE RULES MONTENEGRO POLLS FAIR, VOTER LISTS SUSPECTThe mission of the Organization for Security and Cooperation in Europe monitoring Montenegro's presidential elections has said that voting in the 5 October Montenegrin elections appeared to have been fair. But the OSCE suggested that the register of voters should be reviewed before the 19 October run-off between incumbent President Momir Bulatovic and Prime Minister Milo Djukanovic.[13] EU TO OPEN OFFICE IN PRISTINAThe EU Council of Foreign Ministers, meeting in Luxembourg on 6 October, denounced the use of force by the Serbian police against Albanian protesters in Pristina on 1 October. It also approved the opening of an EU bureau in Pristina. The council stressed its concern over the dangers of a further deterioration of the situation in Kosovo and insisted that the 1996 education accord between Serbia and Kosovo "be implemented without delay." Rexhep Gjergji, a member of the Presidency of the Democratic League of Kosovo and its Foreign Relations Committee, told the Kosovo Information Service that the EU bureau will be a "second window" in Kosovo, alongside the U.S. library, from which the world will closely watch the situation in Kosovo.[14] MACEDONIAN SERBS DECLARE SUPPORT FOR BRETHREN IN KOSOVOThe Democratic Party of Serbs in Macedonia announced on 7 October that Serbs from Macedonia will help Kosovar Serbs if the situation in Kosovo escalates, BETA reported from Skopje. Party leader Dragisa Miletic said in a statement that "We, the Serbs from Macedonia, are well organized for any escalation of the situation in Kosovo...and we will not allow any foul play from the Albanians from Macedonia." The previous day, Arben Xhaferri, leader of the Democratic Party of Albanians in Macedonia, had said "Albanians from Macedonia will, in the event of war in Kosovo, fight together with the people of Kosovo.". Miletic's party has branded Xhaferri's statement as an "immature political move."[15] GOSTIVAR MAYOR RELEASED FROM JAILRufi Osmani was freed from prison on 7 October, BETA reported. His release came 90 days after he was detained in connection with the 9 July demonstrations, in which three Albanians were killed and 100 policemen and demonstrators sustained injuries of various degrees. Osmani was accused of inciting religious and ethnic hatred. He was released by a court decision noting that the 90-day deadline for a final judgment had expired.[16] ALBANIA SIGNS COMMITMENT AGREEMENT WITH IMFThe government signed a six-month commitment agreement with the IMF in Tirana on 7 October, ahead of the upcoming donors' conference in Rome and Brussels. IMF and other donor countries have made further aid to Albania conditional on fiscal reform, including raising value-added tax from 12.5 percent to 20 percent on 1 October. Albanian Prime Minister Fatos Nano said after signing the agreement that "economic reform...will be tough and intensive." Nano also welcomed an offer by Daan Everst, the head of the EU's monitoring mission in Albania, to extend the mission by six months.[17] ALBANIAN PARLIAMENTARY COMMISSION TO INVESTIGATE UNRESTThe parliament on 6 October set up a commission to investigate the unrest in Albania earlier this year. Deputy Spartak Ngjela, who formerly was interim justice minister, was appointed to chair the 11-member commission, to be composed of representatives of all parliamentary parties as well as two independents. The opposition Democratic Party has not yet named its candidates, ATA reported.[18] ROMANIAN FOREIGN MINISTER SAYS HE WON'T RESIGNAdrian Severin on 7 October told the press that he has no intention to resign, RFE/RL's Bucharest bureau reported. After being questioned by the Foreign Relations Committees of the parliament's two chambers about his allegations on "foreign agents" among the leaderships of several parties and in the media, Severin said that to resign now would be an indication of "cowardice" as well as "encouragement" to those he is seeking to expose.[19] MINERS' STRIKE IN ROMANIAMembers of the largest miners' trade union staged a 24-hour strike on 8 October, despite an agreement reached with the government the previous day (see "RFE/RL Newsline," 7 October 1997). Union leader Marin Condeescu said the miners are demanding a 100 percent wage hike and the creation of a national mining agency to oversee mines still in operation. The action follows a two-hour warning strike on 5 October. The miners have said they will launch a general strike on 14 October if their demands have not been met by then, RFE/RL's Bucharest bureau reported. Deputy Minister of Trade and Industry Nicolae Staiculescu commented that it is "strange" to go on strike at a time when the mining industries face a crisis of over- production. He called the strike "blackmail."[20] IMF WANTS MOLDOVA TO FULFILL COMMITMENTSMark Horton, the IMF's permanent representative to Moldova, has said that further IMF loans will be closely linked to Chisinau's fulfilling commitments undertaken by the government, in particular those on reducing the budget deficit, RFE/RL's bureau in the Moldovan capital reported on 6 October. Similarly, James Parks, the World Bank's representative in Moldova, has said he hopes the parliament will soon pass legislation that the bank regards as crucial for the country's economic development. Parks singled out legislation on developing the private sector, reforming education, and setting up a national properties register. He also announced that the bank's board of directors has approved granting Moldova a $100 million structural adjustment loan. The first $35 million installment will be paid out before the end of 1997.[21] RUSSIA REFUTES SPY ALLEGATIONS BY BULGARIAN MEDIA...In a statement released on 7 October, Russian Ambassador to Bulgaria Leonid Kerestedzhiyants said Bulgarian media reports alleging that the embassy is engaged in spying are "scandalous," ITAR-TASS reported. The previous day, Bulgarian pro-government daily "Standard" had claimed that the Russian ambassador is involved in recruiting spies and seeks to upset Bulgarian plans to join NATO soon. Kerestedzhiyants said the embassy is "disturbed" that the Bulgarian government is doing nothing to stop the "defamation" and that some ministers, in particular Interior Minister Bogomil Bonev, have dropped hints that the security services have exposed Russian spying activities. The Russian ambassador commented that "over-zealous government- close quarters" are doing a disservice "not only to Bulgaria but also to NATO," which, he said, "does not want to strain relations with Moscow by using the 'Bulgarian card.'"[22] ...WHILE BULGARIA WANTS "NEW IMPETUS" IN RELATIONS WITH RUSSIABulgarian Foreign Minister Nadezhda Mihailova on 7 October said that while Sofia is determined to join the EU and NATO, it also wants to give new impetus to its traditional relations with Moscow. She told a news conference that Bulgaria wants to "develop contacts with Russia at every level--political and economic." She added that she hopes to visit Russia in November to prepare a visit by President Petar Stoyanov before year's end, Reuters reported. In other news, Prime Minister Ivan Kostov, addressing the General Assembly of the Atlantic Treaty Association in Sofia on 7 October, said his country wants to introduce Western standards in its security and defense policy. He invited foreign investors to invest in Bulgaria's defense industries, RFE/RL's Sofia bureau reported.[C] END NOTE[23] RUSSIA'S LANDMARK DEAL WITH LONDON CLUBby Stephanie BakerRussia and the London Club of commercial creditors have signed a landmark agreement to restructure Soviet-era debts totaling billions of dollars. Russia inherited the massive debt after the collapse of the Soviet Union under a deal with the former republics that gave Moscow control over all Soviet foreign assets. The long-awaited restructuring deal allows Russia to pay off some $32 billion over 25 years. It comes shortly after Russia joined the Paris Club of official creditors, following an agreement that $40 billion in Soviet debts to foreign governments would be rescheduled over 25 years. Officials hail the London Club deal as paving the way for a new wave of investment in the Russian economy. Talking to journalists after the 6 October signing ceremony, First Deputy Prime Minister Anatolii Chubais said "leaders of the biggest banks in the world recognized the irreversibility of our reforms and the prestige of Russia in the international community." He said the agreement would speed up Russia's efforts to join other international financial institutions and help pump desperately needed funds into the economy. He also commented that the deal would allow Russian enterprises to tap international financial sources, weaning them off dependency on the nation's powerful banks. "In effect it opens the door to a non-oligarchic capitalism in Russia," he remarked. Tessen von Heydebreck, a board member at the Deutsche Bank who worked on the restructuring, told reporters that the agreement heralds Russia's return to the international capital markets "as a reliable creditor." He said the agreement could result in a credit rating upgrade for Russia, which would reduce Moscow's costs of borrowing on global financial markets. Top officials from 13 major banks took part in the 6 October signing ceremony in Moscow, together with officials from Vneshekonombank, which has been the Russian government's agent in the negotiations. The deal restructures $24 billion in principal and $8 billion in interest payments on a combined total of 27,000 loans extended to Russia by foreign commercial banks. Von Heydebreck described the agreement as "one of the largest financial transactions of its kind." Banking officials attending the signing said the deal would be an incentive for commercial banks to lend to Russia. Thomas Wells, the vice president of Bank of America in London, said it would "give commercial banks additional confidence to lend to Russia and to private enterprises." Chubais moved to bolster confidence further on 6 October when he announced that Russia will now focus on restructuring an additional $4 billion in outstanding debts owed by Soviet-era enterprises to commercial creditors outside the London Club deal. Those credits were not guaranteed by the Soviet authorities. The closing date for the London Club deal is 2 December, when Russia is scheduled to pay $3 billion in cash toward overdue interest. At that time, the holders of the loans will retire the original debt and receive new Vneshekonombank bonds in exchange. There will be two kinds of the new bonds: some representing interest owed, others principal owed. Eric Fine, an analyst at Morgan Stanley, said there could be volatility on the market as the closing date approaches. But he maintained that in the long term, the London Club deal would help Russia attract a new class of investors and boost its reputation as a reliable creditor on international markets. The author is a Moscow-based RFE/RL correspondent. 08-10-97 Reprinted with permission of Radio Free Europe/Radio Liberty
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